Outdoor Amenities is a manufacturer of backyard and deck furniture. Its products are in high demand, and it carries no inventory. Following is a list of selected account balances from its trial balance for the most recent year ended December 31 (in no particular order.)
Salaries and wages (for administrative and sales staff) ......................................... $ 37,400
Stain (used in manufacturing furniture) ................................................................... $ 12,700
Indirect labor costs (wages of maintenance workers in factory) ............................. $ 21,300
Other manufacturing overhead (includes factory insurance and property taxes) ..... $ 9,800
Rent and utilities (for administrative offices) ........................................................... $ 12,000
Utility costs (related to factory) ............................................................................... $ 11,200
Labor costs (wages of carpenters who build furniture) ........................................... $ 36,900
Accounts receivable ................................................................................................ $ 27,100
Marketing costs ....................................................................................................... $ 17,300
Wood (used in manufacturing furniture) ................................................................. $ 57,800
Sales revenues ..................................................................................................... $ 255,000
Accounts payable ...................................................................................................... $ 7,100
Requirements
Using the income statement accounts in the table, calculate:
1. Cost of goods sold.
2. Operating expenses.
3. Gross profit